How Do Prepaid Funeral Plans Work

Putting pen to paper in the effort to record your cremation intention is one way to ensure your final wishes will be carried out by your survivors; but paying for cremation services in NYC ahead of time can do even more to guarantee your intentions (and save you money at the same time). However, there are some things you should be aware of when you purchase prepaid cremation services in NYC. Naturally, we believe prepaid cremation offers individuals an abundance of benefits; but you really should do your "due diligence" before putting any money on the table.

What are Prepaid Funeral Plans and How Do They Work?

Prepaid cremation services are basically a contract for the future delivery of specific cremation services and related merchandise, which also features a funding instrument in place to pay for the goods and services. Each state has specific laws relating to prepaid funeral and cremation plans, but as a general rule, the funeral home or cremation provider will place a percentage of the plan payment in a state-regulated trust fund. Another option to insure the proper handling of prepaid funds involves the purchase of a life insurance policy with benefits assigned to the funeral home or cremation services provider. And in some cases, these prepaid contracts guarantee the price of the goods and services will cost no more upon delivery than what was paid for at the time the contract was signed.

How to Decide If Prepaid Funeral Plans Are Worth It

Unfortunately, there's a great deal of misunderstanding about prepaid cremation plans, which compels us to bring a few important points to your attention. When you make the decision to purchase cremation services in NYC and pay for them in advance, you should always:

• Compare providers, plan features, and prices. There's no doubt; costs for cremation services and related merchandise can vary drastically. We urge you to do your due diligence; investigate your options thoroughly.
• Review plan(s) carefully. After selecting a provider (or when deciding between providers) you should request a copy of the proposed contract. If applicable, ask for the trust-related financial details. Take the time to review all documents with an attorney; and if you have a financial advisor or accountant, we recommend you consult them as well.
• Investigate the provider's reputation. Before signing any contract or committing any funds, be sure to check the company out with the Better Business Bureau, the state funeral board, attorney general's office and/or consumer protection agency.

Pros and Cons of Prepaid Cremation

Pros: The main reasons to prepay are to have peace of mind knowing the money has been set aside and, if you get a guaranteed funeral contract, the price the funeral will be set so you won't have to worry about your survivors having to pay the bill.

New York State has some of the strongest funeral prepayment laws in the country so when you prepay the money is generally deposited into an account that earns interest and if the funeral home is bought by another funeral home or goes out of business, state law dictates that the funeral home must give you the option to have your money back, with interest, or allow you to provide written authorization to transfer your arrangements to another funeral home.

Cons: It is important to make your next of kin aware of your prepaid funeral plans and the name of the funeral home. If not, they may select a different funeral home and pay again. As the money is deposited into an interest-bearing account, it is important to be aware where it is being deposited. If you do not choose a "guaranteed" prepaid funeral contract, funeral prices can go up with the possibility of the funds not being able to cover the entirety of the cost.

The bottom line: If you want to save your next of kin hassle and remove the financial question from the funeral planning they will be doing, prepaying is a great option.

Pre-Fund Your Cremation Plan with Confidence

While we urge you to investigate all your prepaid cremation services options thoroughly before signing anything, we'd also like to ask that you include our firm in your inquiries. We do so for a reason: we know that each of our cremation services options provides the most value for the dollar. These range from the affordable direct cremation services to cremation with memorial service. After all, the quality of our cremation services in NYC is unmatched, and the professionalism of our staff is extraordinary. When you sign a pre-paid cremation contract with us, you'll do so with the certainty you've made the right choice. When you're ready, call us at 212-473-2220.